Union Bank Mulls Public Float In Current Fiscal

Union Bank of India is planning to go public in the current financial year, according to chairman & managing director V Leeladhar.

"If the market sentiment had been good, the bank would have come out with its public issue by August 2001. However, now the bank is waiting for the markets to improve," he said.

Refusing to divulge related details like the size of the proposed issue, the face value of shares, the likely premium, he said these details are being worked out.

Leeladhar said that his bank would foray into insurance, both life and non-life, by September 2001.

"We have already started negotiations for the same with seven insurance companies, including four in the public sector. Initially, we will market their products by signing strategic alliances," he said.

Other plans on the anvil include taking up government securities as a thrust area for individuals as well as institutions like provident fund trustees.

Moreover, the bank is also eyeing value-added services in personal and commercial banking and would soon introduce demat facility and cash management products and get into collection of taxes on behalf of the government, relief bonds and utility payment services.

The thrust during the coming years would be on the retail banking, wherein the bank proposes to introduce a few more new products both in the deposits and loans segment.

"The bank has targeted a 20 per cent growth in business during the current year. The total business targeted is Rs 62,500 crore, of which deposits will be Rs 40,500 crore and advances Rs 22,000 crore," he elaborated.